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The move is the latest step in Telefonica’s ongoing retreat from its Latin American businesses
Telefonica has announced it will sell all its shares in Telefonica del Peru to Argentina’s Integra Tec International for around PEN 3.7 million ($999,000).
The deal will see Telefonica sell its 99.3% holding in the business, with Integra Tec pledging to purchase the remaining 0.7% via a public tender offer.
”Today Telefónica Hispanoamérica, a wholly-owned subsidiary of Telefónica (Telefónica Hispam), has sold all the shares it holds in Telefónica del Perú, representing approximately 99.3% of its capital stock, to Integra Tec International,” the company announced in a statement, adding that “the price has been determined considering the situation of Telefónica del Perú and the context of the agreement reached.”
Telefónica del Perú, which serves over 13 million customers, has been in financial trouble for many years, having faced a myriad of historic tax and regulatory problems that left the company “at a competitive disadvantage”.
In total, the operator owes €1.24 billion ($1.41 billion)to tax authorities and bond holders – debt that Integra Tec will assume as part of the transaction.
Telefonica instigated voluntary bankruptcy proceedings for the business earlier this year, having recently written down the business’s value by €314 million ($357.49 million).
The sale represents a continuation of Telefonica’s ‘strategic shift’ that began in 2019, when the operator announced it would pull back from the majority of its Central and South American operations and instead focus on four key markets: Germany, Spain, Brazil, and the UK.
Since then, the company has quickly divested of operations in smaller markets, such as Guatemala and El Salvador, and slowly working towards deals in its larger markets.
Telefonica is currently in the process of selling its Argentinian unit to local rival Telecom Argentina for $1.2 billion. The deal is facing strong regulatory scrutiny due to competition concerns.
The operator is also in negotiations around the sale of its Colombian unit and is looking for a buyer for its Mexican operations.
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